Pet Valu Holdings Ltd. · TSX:PET
Pet Valu — Q3 2023 Earnings Presentation
15 slides from Pet Valu's earnings presentation, November 2023
Slide 1: Q3 2023 Financial & Operating Review
Q3 2023 Financial & Operating Review For 13 week period ended Sep. 30, 2023
Slide 2: Disclaimers
Disclaimers Forward-Looking Information This presentation contains forward-looking information. Forward-looking information is provided as of the date of this presentation and is based on management’s opinions, estimates and assumptions in light of its experience and perception of historical trends,
Slide 3: Today's Presenters
Today’s Presenters Richard Maltsbarger President & Chief Executive Officer Linda Drysdale Chief Financial Officer This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted or redistributed, in whole or in part, without the prior written consen
Slide 4: Our Mission
Our Mission To be Canada’s preferred pet retailer delivering the products, care, expertise, and memorable moments that devoted pet lovers want…locally in stores and everywhere online. This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted o
Slide 5: Our Long-Term Growth Formula
Expand Our Our Long-Term 1 Store Network Growth Formula Opportunity to grow store count to 1,200+ Drive Same-Store Underpinned Sales Growth by the 2 Resilient & Build on proven strategies & growing digital channels Growing Canadian Pet Industry Enhance Operating Margins 3 Leverage investments in mod
Slide 6: Q3 2023 Highlights
+4% 8 Same-Store Sales New Store Q3 2023 Growth (basket +4.0%; traffic +0.2%)1 Openings (22 year-to-date) Highlights +7% 11 Revenue Renovations, Expansions Growth or Relocations (to $262 million) (29 year-to-date) $57M GTA DC Adjusted Officially EBITDA Open (21.8% of revenue) (670K sq. ft.) 1 Traffi
Slide 7: Looking Ahead
Looking Ahead Expand Our Drive Same-Store Enhance Operating 1 Store Network 2 Sales Growth 3 Margins • Open 35-40 new stores in 2023 • Exciting merchandising • Targeted actions to leverage prior innovation coming in both investments and offset external • Selecting locations for 2024 & consumables &
Slide 8: Q3 2023 Key Financial Metrics
Q3 2023 Key Financial Metrics Q3 2023 vs. PY2 Drivers System-Wide Sales $357.2 +7.7% • Solid SSSG, 38 new stores in last 12 months Same-Store Sales Growth +4.2% --- • Basket1 +4.0% and Traffic1 +0.2% Revenue $262.3 +7.2% • In-line with growth in system-wide sales • (310 bps) excluding supply chain t
Slide 9: Q3 2023 Key Financial Metrics
Cash Free Cash Flow Q3 2023 $11.3M $18.1M Key Financial plus $130M revolver capacity vs. $19.9M in Q3 2022 Metrics Long-term Debt Net Leverage Ratio1 $297.4M 2.2x (12%) vs. Q3 2022 in-line with Q2 2023 Inventory Net Capital Expenditures $135.0M $13.4M (1%) vs. Q3 2022 $40.9M year-to-date 1Net Levera
Slide 10: Outlook
2023 Updated Prior Outlook Same-Store Sales Growth +5.5-6.6% +7-10% New Stores Openings 35-40 40-50 Revenue $1,055-1,065M $1,050-1,075M Adjusted EBITDA $230-233M $230-237M Adjusted Net Income $1.60-1.63 $1.60-1.66 per Diluted Share Net Capital Expenditures $60M $60M This presentation and any informa
Slide 11: Appendix
Appendix This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted or redistributed, in whole or in part, without the prior written consent of Pet Valu Canada Inc. © 2023 Pet Valu Canada Inc. 11
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Quarters Ended Sep. 30, 2023 Oct. 1, 2022 (13 weeks) (13 weeks) Net income $17,976 $26,986 (1) Represents discrete, project-based implementation costs associated with new information technology systems and discrete Software-as-a-Service (“SaaS”) arrangements for tra
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Quarters Ended Sep. 30, 2023 Oct. 1, 2022 (13 weeks) (13 weeks) Net income $17,976 $26,986 (1) Represents discrete, project-based implementation costs associated with new information technology systems and discrete SaaS arrangements for transformational initiati
Slide 14: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Quarters Ended Sep. 30, 2023 Oct. 1, 2022 (13 weeks) (13 weeks) Cash provided by operating activities $34,444 33,824 Cash (used in) provided by investing activities (3,448) 1,638 Repayment of principal on lease liabilities (8,210) (12,026) Interest paid on lease liab
Slide 15: Thank You
Thank You Contact Us: investors@petvalu.com (289) 806-4559 This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted or redistributed, in whole or in part, without the prior written consent of Pet Valu Canada Inc. © 2023 Pet Valu Canada Inc. 1